Wilbur Ross picks up equity worth Rs 345 cr in SpiceJet

NEW DELHI: Budget carrier SpiceJet Ltd said on Tuesday that US investor WL Ross & Co LLC will invest about Rs 345 crore ($80 million) in the company, but did not give any details on the investment.

The board of directors of SpiceJet has accepted an offer in-principle from the US-based PE firm that would make available about Rs 345 crore (around $80 million) to SpiceJet, a joint statement issued by SpiceJet and WL Ross & Co said.

"This is a significant investment for SpiceJet to retain its low-cost model. This will strengthen SpiceJet and help it in its expansion plans," Director Ajay Singh told reporters over telephone.

He however declined to give details on the investment. "We are not declaring the structure of the deal at present," he said.

On the issue of their talks with Kingfisher founder Vijay Mallya, Singh said at present they will concentrate on the investment by Ross but were open to the idea of future consolidation in the industry.

On Tuesday, Mallya told reporters at the Farnborough Airshow in England that he was rebuffed by SpiceJet. "They have aspirations which I cannot meet. I made an offer which I considered good for Kingfisher," he said.

"We are delighted to have WL Ross as an investor in SpiceJet. WL Ross is one of the largest and the most experienced investor in the world. With this investment, we have no doubt that SpiceJet will fulfill its promise of emerging as India's leading airline," SpiceJet board member Bhulo Kansagra said.

"We believe in the long term validity of the low cost airline model in India and that fuel prices eventually will stabilise," Chairman & CEO, WL Ross & Co LLC Wilbur L Ross said.

This would be WL Ross' second investment in India. Last year, WL Ross had acquired apparel maker OCM India for about $37 million.

"SpiceJet is one of the most efficient airlines in India. We are delighted to contribute to its growth and development," Ranjeet Nabha WL Ross India Managing Director & CEO said.

Shares of SpiceJet were trading at Rs 30.05, up 7.51 per cent in the morning trade on the Bombay Stock Exchange.